This bug was fixed in the package open-iscsi -
2.0.873+git0.3b4b4500-14ubuntu14

---------------
open-iscsi (2.0.873+git0.3b4b4500-14ubuntu14) zesty; urgency=medium

  * Make systemd job not run in containers (LP: #1576341)

 -- Serge Hallyn <serge.hal...@ubuntu.com>  Sun, 15 Jan 2017 23:08:29
-0600

** Changed in: open-iscsi (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/1576341

Title:
  fails in lxd container

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